Correlation Between Kuang Chi and Eyebright Medical
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By analyzing existing cross correlation between Kuang Chi Technologies and Eyebright Medical Technology, you can compare the effects of market volatilities on Kuang Chi and Eyebright Medical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kuang Chi with a short position of Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Eyebright Medical.
Diversification Opportunities for Kuang Chi and Eyebright Medical
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kuang and Eyebright is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical and Kuang Chi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kuang Chi Technologies are associated (or correlated) with Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Kuang Chi i.e., Kuang Chi and Eyebright Medical go up and down completely randomly.
Pair Corralation between Kuang Chi and Eyebright Medical
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 0.9 times more return on investment than Eyebright Medical. However, Kuang Chi Technologies is 1.11 times less risky than Eyebright Medical. It trades about 0.07 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about -0.03 per unit of risk. If you would invest 1,858 in Kuang Chi Technologies on October 27, 2024 and sell it today you would earn a total of 2,249 from holding Kuang Chi Technologies or generate 121.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Eyebright Medical Technology
Performance |
| Timeline |
| Kuang Chi Technologies |
| Eyebright Medical |
Kuang Chi and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Eyebright Medical
The main advantage of trading using opposite Kuang Chi and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi position performs unexpectedly, Eyebright Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| Kuang Chi vs. Meinian Onehealth Healthcare | Kuang Chi vs. Mingchen Health Co | Kuang Chi vs. Tonghua Grape Wine | Kuang Chi vs. Shenzhen Topway Video |
| Eyebright Medical vs. Agricultural Bank of | Eyebright Medical vs. Industrial and Commercial | Eyebright Medical vs. Bank of China | Eyebright Medical vs. China Construction Bank |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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